Minnesotans Can Get Money Back Through Settlements with Generic Drug Manufacturers

Minnesotans who paid too much for generic drugs made by Heritage Pharmaceuticals and Apotex could receive compensation under interstate settlements announced Monday by the Attorney General’s Office.

The settlements involve patients who received prescriptions for various drugs between 2010 and 2018, including various forms of metformin to treat diabetes, the diuretic acetazolamide to treat cardiovascular disease and a drug to treat rheumatoid arthritis called leflunomide. Minnesota Attorney General Keith Ellison encouraged Minnesotans to email [email protected] or call 866-290-0182 if they believe they may qualify.

“I’m glad today’s settlements will return money to Minnesotans,” said Ellison, who accused the companies of “plans to reduce competition, raise prices and line their pockets at your expense.”

Antitrust cases in 50 states are being led by the attorney general of Connecticut, where a motion was filed Monday in federal court seeking preliminary approval of a $10 million settlement with Heritage, a subsidiary of an Indian multinational based in New Jersey. A $39 million settlement is expected with Canadian manufacturer Apotex.

Neither company is among the largest generic drug makers in the United States, such as Teva and Sun Pharmaceuticals. But both have agreed, as part of their agreements, to cooperate with ongoing price-fixing lawsuits against the companies.

Brand-name drug makers have exclusive rights to manufacture drugs in the U.S. until their patents expire, usually after 20 years, at which time generic manufacturers can step in and produce equivalent products.

Generic drugs are often sold at a fraction of their cost, but lawsuits have accused company executives and sellers of secretly working together to illegally reduce competition and keep generic prices high. The lawsuits involved telephone and electronic communications during which agreements were made, as well as parties and golf trips where executives allegedly agreed to “play well in the sandbox.”

Patients are typically not as familiar with the names of the companies that make their generic drugs, but can contact their pharmacies, clinics, or health plans to obtain this information. The settlements give eligible patients and Minnesota’s federally subsidized health plans the right to recover overcharges for their prescriptions.